Legal Question in Bankruptcy in Nebraska

Bankruptcy/ Student Loan after 7 years default

After 7 yrs. in default can I attempt to go bankrupt on government issued student loan? I make under 10K per year and have tried to go back to school but am currently 25K in debt with electronics degree from school which claimed to be accredited. Tried to transfer credits to expand education but no schools anywhere would allow it. Cannot convince creditors to stop interest on loan. I graduated with a 3.41 GPA, but no one wanted to hire me due to reputation of school. School is now bankrupt due to governmental law suit against establishment. I cannot sue school for this reason. I tried to find a way to get loan removed so I can further education but I cannot. I just want to return to school and get a real degree. If you can help me or give advice, please do so.If I could stop interest on loan (currently $179 per month) or go bankrupt in attempt to get creditors off my back and start over, I would be grateful. I am 3.5 years in default.


Asked on 12/05/97, 1:56 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Student loans/bankruptcy

Student loans, as you correctly surmise, aredischargeable in bankruptcy after 7 years, butit is not 7 years after default. Rather, itis 7 years after payments first came due, notcounting periods of deferment. It is also possible to seek a hardship discharge of the loans, but it is risky to file bankruptcy foronly the possibility that the court would grantsuch a discharge. You should discuss your situation with an experienced bankruptcy lawyerin your area.

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Answered on 12/06/97, 1:09 pm


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